China targeted the most vulnerable agricultural industries early in the trade war, hitting soybeans and pork with high tariffs in the spring and summer of 2018.
A man is reflected on an electronic board showing a graph analyzing recent change of Nikkei stock index outside a brokerage in Tokyo, Japan, January 7, 2019.
The newly accelerated goal - an endeavor likely to cost tens of billions of dollars - comes as NASA has struggled with the help of private partners to resume human space missions from US soil for the first time since the shuttle program ended in 2011.
USA tariffs a year ago triggered retaliation by China, which imposed 25% levies on $50 billion worth of US products including soybeans, beef and pork and lower tariffs on a list of$60 billion in goods.
Its onshore counterpart strengthened to 6.8733 per dollar after touching four-month lows on Monday, sparking speculation China's central bank may be letting the currency weaken amid the intensifying trade war.
USA financial markets dipped dramatically in response on Monday. The Dow Jones Industrial Average fell by more than 700 points shortly after 1 p.m. ET Monday, with the Nasdaq composite falling by about 3.5%.
"I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don't make a deal because companies will be forced to leave China for other countries".
Kudlow claimed that "both sides" would pay, saying that "Chinese will suffer GDP losses and so forth with respect to a diminishing export market and goods that they may need".
The latest round of trade negotiations between the world's top two economies ended on Friday without a deal, with US President Donald Trump increasing tariffs on $200 billion worth of Chinese goods to 25 per cent and ordering the start of a process to impose new duties on another $300 billion worth of items. Benchmark 10-year Treasury notes last yielded 2.4157% compared with a USA close of 2.405% on Monday. Unlike many other news organizations, we have not put up a paywall.
The deteriorating trade negotiations follow what has been a mostly calm period of trading where solid economic data and corporate earnings helped push the market steadily higher. The S&P 500 is still up 12.2% of the year with technology stocks still boasting an 18% gain.
Investors have so far made it through the bulk of first quarter corporate earnings reports in decent shape. However, the fallout from the trade war could spoil an expected earnings recovery in the second half. The results so far show less than a 1% drop in profit.
Earlier, China announced it would impose higher tariffs on a range of U.S. goods including frozen vegetables and liquefied natural gas, a move that followed Washington's decision last week to hike its own levies on $200 billion in Chinese imports.
Elsewhere in the market, generic drug developers are sinking after many of them were accused of artificially inflating and manipulating prices.
Teva, which was specifically mentioned, sank 16.8%.
Gold mining companies rose as the price of gold, another safe-play asset, rose 1.1% to $1,301.80 an ounce.
USA crude CLc1 was 0.33% higher at $61.24 per barrel while Brent crude gained 0.36% to $70.48 per barrel.